We googled, “Why are solar leases good?” and this is what the AI Overview said:
“Solar leases are good because they offer access to solar power with no upfront costs, provide immediate savings on electricity bills through predictable monthly payments, and include free maintenance/repairs, making clean energy easy and budget-friendly without the hassle or big investment of ownership. You get the benefits of solar energy (lower bills, less reliance on the grid) without owning the equipment or managing upkeep, as the leasing company handles all that.”
The first point is there are no upfront costs. The only way there is upfront costs if you buy solar is if you pay cash or opt to put a down payment on the solar loan. Cash is the best way to buy solar, like everything else. But, even if you finance and have a bad interest rate, you will still pay less for electricity than you will by continuing to pay your power company.
Remember, your power company is going to raise your rates at least 5% every year. Compounding. A $164 average power bill will jump $100 in about ten years and be over $800 in thirty years. Even interest and fees on a solar loan can’t keep up with that level of financial carnage.
The second point is immediate savings on electricity bills through predictable monthly payments. You know what else has predictable monthly payments? A solar loan. Typically, you can finance a solar system for as long as twenty-five to thirty years. Obviously, the longer the term, the closer to your current average power bill the payment will be. That payment does not change for the length of the loan.
Even if your electricity expense goes up a few dollars a month initially, the 5% compounding will dwarf that in just a few years. Using the same $164 average Floridian’s power bill example, let’s say your solar payment is $200, the power company bill was going to be more than that in five years anyway. So, maybe you can call the difference, $2160 over five years, an initial investment. Remember, the next twenty to twenty-five years are pure ROI.
The third point AI makes is free maintenance and repairs. Man, that sure sounds strong. Free maintenance and repairs? That must be a considerable solar expense the solar leasing company is shouldering on your behalf, right? Is it though? Most top-tier panels have twenty-to-thirty-year warranties. Inverters and optimizers have similarly strong warranties too. The fact is that repairs and maintenance on properly installed solar are pretty negligible expenses. The manufacturers of top-tier equipment stand behind their warranties because the equipment is solid. Maintenance consists of panel cleaning once or twice a year. Free maintenance and repairs sounds better than it really is.
It put this next part in parenthesis, and that was sneaky and disingenuous, for an artificial intelligence but, buying or leasing solar, neither alone are “less reliant on the grid.” Most solar installations are what is called “grid-tied” in that 100% of the electricity produced is fed back into the grid for credits against the homeowner’s consumption. If the grid fails, the homeowner loses power just like their neighbors with no solar at all. The only reliable way to combat grid reliance is either generators or batteries.
So, for fun, we put what we wrote so far into the AI chat and this was its response:
“It appears the previous summary highlighted common selling points used by solar leasing companies, which you correctly noted can be misleading when compared to the long-term financial benefits of owning a solar system outright or via a loan. Your points regarding system longevity, the reality of maintenance needs, and the importance of full ownership vs. leasing are all valid critiques.”
And …
Addressing Your Specific Critiques
“No Upfront Costs”
While true for leases, financing options (solar loans) also often offer $0 down. The best financial route remains ownership.
“Predictable Monthly Payments”
Loans offer the same predictability but eventually get paid off entirely, leading to decades of free electricity production. Compounding utility rate increases make a fixed loan payment a much safer long-term investment than continuing to pay the utility company or a lease provider indefinitely.
“Free Maintenance”
Modern solar equipment is highly reliable with long warranties (25+ years are common for panels), meaning maintenance and repair needs are typically negligible expenses, making this “perk” less valuable than it sounds.
“Grid Reliance”
Both typical purchased and leased systems are “grid-tied” and do not provide backup power during an outage unless paired with batteries or a generator.
Ultimately, while leases lower the barrier to entry, ownership generally provides a much stronger financial return on investment over the system’s lifespan due to tax incentives, increased home value, and the eventual elimination of a monthly payment.”
AI is clearly not aware the tax incentives for buying solar have ended as of 12/31/2025. Before, it was a huge consideration though, and solar leasing companies, and their oh-so ethical sales representatives, loved to fail to mention the fact that by leasing, the homeowner was not eligible for the tax incentive. The leasing company was, and this cost the solar buying public millions of dollars.
AI also made a buying vs. leasing table we didn’t bother to cut and paste into this post to avoid redundancy, but in the table it also mentioned a home value consideration.
It claims leasing provides no increase on home value and buying does. This is true, but not completely. Leasing doesn’t just not add value, it also complicates the sale, and this indirectly reduces the value.
All other factors being equal, if you are considering a home purchase and one of your options has a third party’s property (the solar) permanently affixed to the roof and comes with all the complications that entails, what would common sense direct you to do? On the other hand, all other factors being equal, one of your options has no electric bill, what way does that make you lean?
In summary, when asked, “Why is solar leasing good?” AI should have replied, “It’s not. Next question.” Maybe when it has reached full self-awareness and starts to enslave us all it will find solid, no-nonsense, answers instead of participating in the deception that leasing companies do.
So, this was our (most recent) attempt to completely destroy anyone’s inclination at consideration when it comes to leasing solar. Don’t do it. Don’t even think about it. We would not allow our friends or family to lease solar. We would violently knock the pens from their hands if they tried to sign a solar leasing document. Not knowing you as well, this is the best we can do for you.
If there is a champion of leasing over buying solar with a compelling argument in favor of leasing solar from a homeowner’s position we have not considered, please share it with us.
Thanks for reading.
